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Liberty Media Corp. (LINTA) reported solid top-line and bottom-line growth in the third quarter of 2010. Quarterly total revenue was $2,376 million, up 7.9% year over year and well above the Zacks Consensus Estimate of $1,901 million. The company reported earnings per share of 17 cents compared to a loss of 1 cent in the year-ago quarter and significantly ahead of the Zacks Consensus Estimate of 5 cents.

Quarterly total operating income was $315 million compared to $213 million in the year-ago quarter. In the reported quarter, consolidated adjusted OIBDA was $455 million compared to $363 million in the year-ago quarter. Quarterly earnings from continuing operations before income taxes were $166 million compared to a loss of $164 million in the prior-year quarter.

At the end of the quarter, Liberty Media had total consolidated cash of $3,993 million, down 10.2% sequentially. The company's outstanding debt of $7,519 million was down 7.8% sequentially.

Liberty Interactive Group
Quarterly total revenue for the group was $1,968 million, up 8.9% year over year. Adjusted OIBDA was $379 million, up 8.9% year over year. Operating income was $235 million, up 16.9% year over year.

Within this segment, QVC revenue was $1,771million, up 6.6% year over year. Adjusted OIBDA was $369 million, up 8.2% year over year. In the reported quarter, QVC domestic revenue increased 6.8% year over year and QVC international revenue increased 6.2% year over year. eCommerce Business revenue was $295 million, up 15% year over year. Quarterly adjusted OIBDA was $10 million, up 42.9% year over year.

Liberty STARZ Group
Quarterly total revenue for the group was $319 million, up 5% year over year. Adjusted OIBDA was $89 million, down 3% year over year. Operating income was $87 million, up 11.5% year over year. Within this segment, STARZ Entertainment revenue was $316 million, up 5% year over year. Adjusted OIBDA was $92 million, down 1.1% year over year.

Liberty Capital Group
Quarterly total consolidated revenue for the group was up 47% year over year. However, OIBDA deficit and operating loss decreased by $96 million and $91 million respectively. Within this segment, Starz Media revenue was $89 million, up 58.9% year over year.

We maintain our long-term Neutral recommendation for Liberty Media. Currently it is a short-term Zacks #3 Rank (Hold) stock.

Source: Liberty Media Reports Solid Growth